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Coach Challenges The New Starting Point Of Luxury: Exploding Asia

2013/7/19 22:33:00 62

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if you ask a Chinese tourist who likes shopping to visit New York, maybe 80% will reply to the factory store of the largest Outlets Woodbury factory on the east coast of the United States to buy New York's Local Specialties - Coach.

April 2010, Coach China flagship store officially landed in the most prosperous area of Shanghai, Huaihailu Road, and the four flagship stores of Hermes, Louis Vuitton and Cartire flagship store.

Sitting in the most fashionable and prosperous section of Shanghai, with luxurious decoration style and exquisite layout, it is fashionable white collar and fashion group to enter and leave.

The choice of "P > Coach" is very harsh. The condition is to choose the street corner of more than 1 million passengers, so that pedestrians can see the situation in any street.

In order to cooperate with the new product launch every month, Coach will also synchronize the layout of new stores in the world, such as sofa location, planting, etc., which is planned by the global headquarters, sending out decorating parcels every month, including the layout and layout of the month's display, and even playing the store music all over the world.

but in the global luxury industry territory, Coach, which is so striking in China, is only a second-line brand in the US.

Compared with the history of LV, Hermes and other top luxury brands in Europe for more than 100 years, Coach with only 70 years of history is slightly younger in the luxury goods industry than P.

Born in the United States, where luxury culture is not well established, Coach can not compare with European luxury brands. However, Coach has been developing a different road with its unique self positioning and alternative practices: "taking the luxury goods" as a gesture of affinity to the people, challenging the old luxury goods in Europe with the "affordable" high price performance ratio, and successfully acquiring "counterattack" in emerging markets like China to please more Chinese consumers.

new starting point: detonating Asia

look at the performance of Coach since entering the Asian market. From 2001 to 2006, the revenue growth of Coach Japan reached 722%, and the market rank jumped from fifth to second, becoming the most successful overseas market outside the United States.

Similarly, after the eight launch of the anti-corruption countries, the luxury industry in China is developing slowly, and Coach's Chinese business has also performed well. P

In the financial year of P > 2012, Coach China achieved more than US $300 million sales and grew by 60%.

The first quarter increased by 40% compared with the same period last year, and double sales growth in the same store last year. In January this year, Coach opened in 100th stores in mainland China. In March, the number of stores in mainland China exceeded 100, reaching 118 in Urumqi.

North America, which accounted for nearly 70% of P, opened only 3 new stores in the quarter, while closing 5 stores, while the same store sales grew by 1%.

At the same time, the European region is also a field that Coach has never been able to conquer. Because of the fierce competition of brand, Coach only opened its store in Paris spring department store and other large department stores in June 2010.

Why did P slow down in the mature markets such as Europe and America, but it can be very popular in Asia? It has to be attributed to the chairman and CEO Lew Frankfort.

After taking office, he grasped the potential market opportunities of Asia with keen acuity, and actively created the Asian production base, and formulated corresponding strategies accordingly.

according to the 2012 China luxury market research released by the world-famous strategy consulting firms Bain company, the scale of China's luxury goods has reached 115 billion yuan, ranking fifth in the world.

Compared with the European and American markets with the development of luxury goods and mature consumers, consumers' recognition of luxury brands is lagging behind in the emerging Asian market, and the line between first-line brands and second tier brands is not yet clear.

Since 2005, China's luxury market has just entered the development stage. In the industry, more Coach is regarded as high-end consumer goods instead of luxury goods. Under the leadership of Lew Frankfort, it is naturally a wise and long-term choice to choose to play a big role in China.

the three pillars of resurrection

in the "The Official Preppy Handbook" book, the self satisfied and noble Europeans described the interest of the descendants of the first batch of capitalists in the United States as saying: rich but unexposed, luxurious but not Chinese. Women tend to have a "Coach canvas bag" which is "not bad for many years, the best color is navy blue and wine red".

, therefore, Coach has been derogated by the fashion industry as "mother's handbag".

In P 1999, Lew Frankfort took over Coach and repositioned it as a young luxury brand that could easily be owned.

Looking at the development of Coach over the years, price positioning, fashion design and sales channels are the three pillars of this brand's "Resurrection".

"Due to the foundation of American culture, its way of building is different from European luxury brands such as LV," said P, an expert in the luxury research center of the University of foreign trade and economics. "But the speed of innovation of Coach products and the market positioning of consumers are the reasons why they can take a firm foothold in a highly competitive market."

from the 1941 family business workshop built in the attic, it now has more than 200 sales outlets in the United States, and gradually opens the market overseas, creating Coach of luxury image.

in the description of Jonathan Seliger, President and chief executive officer of Coach China, "this positioning means that every handmade product of Coach has quality materials and processes comparable to European luxury brands, but the price is not as high as expected, but only 40% to 60%".

"P," he boldly pointed out, "as the economy may continue to slump, people will tend to look for more affordable luxury goods and more affordable prices, which is provided by Coach.

We believe that the potential economic downturn will not only affect us, but will benefit from it. "

in the high-speed operation of digital network media, more and more consumers understand the brand through social media. Of course, Coach will not miss this excellent mode.

Sina micro-blog and Tencent WeChat social media is an important window for Coach to promote its brand and enhance its popularity in China.

Coach official micro-blog's operation team was created by Seliger, and now has more than 690 thousand fans.

Coach micro-blog content update mainly includes the release of new products, publicity brands, and dissemination of fashion news in New York. Fans are delighted to see the trend and development trend of New York fashion through Coach products.

Fans associate the Coach brand with New York fashion, which is what micro-blog's operation team hopes and likes.

America once commented: "there is hardly any company that can match Coach company in terms of customer preferences and aspirations."

in fact, consumers are too narrow to pursue "design guided consumption" without paying attention to the needs of consumers, which is a consistent practice of European luxury goods manufacturers.

However, many famous a target= "_blank" href= "http://www.91se91.com/" > designer "/a" all have distinct personality, because design concepts are too deviant, and designers and brands are also very few examples.

This is precisely the Coach's chairman and CEO Lew Frankfort's most disgusting way of European luxury management.

Jonathan Seliger also believes that Coach has different target groups with other high-end luxury brands. "In the United States, the target group of traditional European luxury brands only lock the top 3% of high-income families, but Coach extends this range to 20%".

What P wants to do is to meet the needs of more consumers, adhere to rigorous consumer research, and analyze the data to predict the trend of the trend, and find the design elements of the product from Coach.

Executive Creative Director Stuart Vevers will lead the team to constantly seek new inspiration to inject innovative elements, and of course every new product will have an impact assessment in the market.

Jonathan Seliger put forward, "Coach has investigated more than 50000 consumers worldwide, including 8000 Chinese consumers through the Internet, e-mail, telephone, group discussion and interviews".

This way in his view is "meet the needs of consumers to buy high repurchase intention, but helps Coach maintain a good brand image."

Zeng Mingyue also told the "Global Entrepreneur" that this multi-channel media method is in line with Coach's characteristics of their popular positioning. Even in the traditional European luxury mode, Coach is not a luxury product, it can only be said to be a fashion product, but it can not be denied that its market performance is very good.

Jonathan Seliger said in an interview with the media that Coach will set up the Chinese market at least 30 stores a year from this year, and consolidate its dominant position in China through fast and stable market share.

for the Coach of "a new way" at some point, the sense of distance creation is never their original intention. If they try to be friendly to customers face to face, they may also turn inferiority into an advantage as a rising star in the competition of "light luxury goods".

for example, they ask all stores to open their doors forever to ensure a welcome attitude towards all consumers.

This slight change is very pleasing and pleasing to consumers.